Insurance is a must for every homeowner to have. Did you know you should also have proper protection for your secondary properties as well? Secondary properties are homes you do not occupy on a full-time basis such as a cottage or a vacation property. Not sure what you need to know about insuring your secondary properties? We’re going to give you some details you should have in hand to make sure you have the proper coverage to keep this type of property safe!

What you should know about protecting your home away from home?

There are several policy differences property owners should know when they have a secondary property versus their primary one. Some of the issues that apply to your primary home may not hold true for your home away from home. Because many secondary homes are not used all year round, coverage is typically more limited.

Policies for vacation properties is usually provided as a “named perils policy” (coverage is only provided for specific risks stated in a policy such as explosion, fire, and smoke damage) instead of a “comprehensive policy” (the policy covers both the building and what is within it for all risks, except for one that is specifically excluded). As well, based on your preference, homeowners can include their vacation property as a “secondary” or “seasonal” location in their primary home policy, or it can be insured on its own.

Due to the fact that your getaway is not occupied full-time, coverage for risks such as vandalism or water damage may be more difficult or costly to cover. This is because if this damage occurred while the property was unoccupied, the damage could be more severe if not attended to immediately.

There are also some risks insurers are not willing to take on when covering vacation properties. Some of them include sewer backup, damage to / loss of food in a freezer, outdoor plants, gardening equipment, trees, and shrubs.

What your insurance broker should know about your vacation property?

In order to have the correct coverage for your cottage or vacation property, it is best to inform your insurance broker of as many details about it as possible. Some of the details your broker should know are how you use your vacation property (is it a family getaway or is it rented out?) and how often it is occupied throughout the year (is it used seasonally or throughout the year?). How you respond to these questions will guide your insurance representative to give you the best advice and policy for this property.

Different coverage options to consider

Property owners have a few different coverage options to consider when getting coverage for their secondary property.

Third-Party Liability Coverage is an important option to have for your cottage or vacation property. It protects you should someone get hurt on your property or you cause damage to any neighbouring properties.

Contents Coverage is an extra option you can purchase if there are items in your vacation home that stay on the property. Some insurers include this type of coverage, up to a certain limit, into a policy package.

Detached Private Structures Coverage, to a certain amount, may be included in an insurance package. If not, or to provide full coverage, it can be purchased to protect any outbuildings, including boathouses, garages, or sheds.

Whether your cottage or vacation property is a place where your family spends a lot of time or if it is an investment property, making sure it has the proper insurance protection will give you peace of mind should problems arise there. Want to know more information about insurance coverage for your secondary property? Contact us today.

Sources
http://www.ibc.ca/qc/home/types-of-coverage
http://www.ibc.ca/pe/home/recreational-properties/cottage/
http://www.ibc.ca/sk/home/recreational-properties